At least one corner of the federal government has a money problem: It’s sitting on too much of it.
The U.S. Mint has produced $1.4 billion in surplus dollar coins that are sitting in Federal Reserve vaults. So Vice President Biden announced Tuesday that the Treasury Department would stop mass producing the presidential coins.
“They make hundreds of millions of these coins every year; 40% of them end up being returned to the Federal Reserve because nobody wants them. And here’s the worst part: They’re still making coins of presidents from the 1800s, meaning the United States Mint is about halfway through its planned production,” Biden said at an event to highlight the administration’s efforts to curb government waste.
“And as it will shock you all, the call for Chester A. Arthur coins is not there,” Biden joked.
The Treasury Department says the move will save $50 million a year. “We shouldn’t be wasting money on money,” Treasury Secretary Timothy Geithner said.
But if the presidential coin is such a clear case of wasteful government spending, at least one taxpayer watchdog is growling.
“We’re honestly outraged about this,” said Tom Schatz, president of Citizens Against Government Waste. “If they wanted to stop producing something that loses money in terms of minting coins, they should get rid of the penny and nickel.”
The dollar coin, he said, actually saves taxpayers money. That’s because it costs 18 cents to produce, with the rest going to the government as profit. And because coins last longer than bills, shifting to a dollar coin could save $5.6 billion over 30 years, according to the Government Accountability Office.
But for that to happen, the government would have to take dollar bills out of circulation.
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7 Responses
He did NOT say they were phasing out dollar coins. He said they would stop producing new ones until they needed a fresh supply. As long as they can find someone who wants them, the government mades a nice profit from each coin (since it costs less to amke the coin than $1, and each coin brings in $1 when it leave the Mint).
I don’t know what their issue is. I bought tens of thousands of these before they stopped allowing you to buy them in bulk.
I really don’t know what they are good for, other than paying the dollar tolls on the GSP. As a coin they have no special monetary value other than $1.00 and they are heavier and bulkier to carry around in your wallet. I only keep a roll in my car to pay the tolls. (I have something against E-Z pass)
They might cost less to produce per dollar than four quarters, or ten dimes, but are they cheaper than paper dollars? And the watchdog idiot should read the article, where it said that 40% of them are being returned to the federal reserve bank because no one wants them. You can’t make a profit just because you can get a cheap supply. You also need a demand!
#3 i know what it is. if it goes quicker and costs less why wondnt u use it? simple u dont want to be traced: criminal activity child support no license or other papers or something not right .
#4: Since paper money has to replaced after a few months and coins last for many years, coins are cheaper.
#5: Paranoids also don’t use EZpass.
People have gotten speeding tickets because their EZpass showed them going too quickly from one toll booth to the next on highways.
I don’t like dollar coins either. They weigh down my pocket book.